All You Need To Know Going Into Trade On December 15
Asian equities are drifting lower this morning post a mixed overnight session on Wall Street.
Benchmark indices in Japan, Australia and South Korea fell in early trade. Focus today will be on industrial production and retail sales data from China.
Energy producers fell and oil prices fluctuated after OPEC cut its demand forecast.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.2% to 13,562 as of 6:50 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Let’s take a look at the factors that may influence equities in today’s session:
- Futures on the Dow Jones are currently trading with gains of 90 points. The index fell 0.6% on Monday.
- The S&P 500 declined for the fourth straight day, marking its longest losing streak since September.
- New York City Mayor Bill de Blasio warned that people should be prepared for a full shutdown as Covid-19 cases show no signs of easing.
- “Signs of market fatigue are more prevalent today than a month ago, even as the popular average is near all-time highs,” according to Paul Nolte of Kingsview Investment Management. “The much-awaited correction could come as investors tire of Washington, worry about the Covid cases over the holidays, or some other concern that is likely to pass in a few months,” he wrote.
- The Electoral College on Monday finally confirmed Joe Biden's victory in the U.S. Presidential Elections.
- Yield on the 10-year treasuries stood at 0.9%.
- West Texas Intermediate crude was little changed at $46.97 per barrel.
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Stock To Watch
- Kotak Mahindra Bank: RBI granted approval for the re-appointments of Uday Kotak as MD & CEO, Dipak Gupta as Joint MD and Prakash Apte as Part-time Chairman for a period of 3 years, with effect from January 1, 2021.
- TCS: Has expanded its strategic partnership with Star Alliance to provide predictive and real-time business analytics, improve its customers’ overall experience and accelerate its digital transformation journey. The expanded partnership will see TCS leverage its domain expertise and contextual knowledge to deploy AWS technology around data analytics, business intelligence and machine learning to improve Star Alliance’s business performance and ability to innovate at scale.
- Tata Steel: Has increased its aggregate indirect shareholding in Tata Steel Minerals Canada to 82% after acquiring 4.32% additional equity in TSMC. Acquisition was done via share swap and other inter-company adjustments. Transaction done on a cashless basis and part of the share swap arrangement. Tata Steel through its indirect subsidiary TSMUK Ltd. held 77.68% equity share capital and 100% preference share capital of Tata Steel Minerals Canada.
- Borosil Renewables: Launches QIP issue on Monday. Floor price of Rs 133.19 is a 15% discount to Monday’s closing price. The board to meet again on December 17 to decide on the issue price. In other news, The Directorate General of Trade Remedies, Ministry of Commerce & Industry, has issued final findings for imposition of Countervailing duty of 9.71% of CIF value for a period of 5 years on imports of textured, tempered, coated or uncoated glass from Malaysia.
- Shriram City Union Finance: The Banking and Securities Management Committee of the company has approved the issue of Principal Protected Market Linked (PP-MLD) Non-Convertible Debentures of face value of Rs 10 lakh each for an amount of Rs 100 crore with a greenshoe option of up to Rs 100 crore aggregating up to 2,000 NCDs worth Rs 200 crore in one or more tranches either as fully paid-up or partly paid-up on Private Placement basis.
- Computer Age Management Services: Has incorporated a wholly owned subsidiary named CAMS Payment Services. The subsidiary will be making an application to the RBI for being registered as a payment aggregator.
JSW Steel: The board of directors of Periama Holdings, a wholly-owned indirect subsidiary of JSW Steel, have approved the issuance of $250 million aggregate principal amount of its 5.95% notes due 2026 which are guaranteed by the company.
- Indian Bank: Has further raised Tier-1 Capital through Private Placement of Basel-Ill compliant AT-1 Perpetual Bonds aggregating to Rs 560 crore at a coupon of 8.44% per annum. The issuance/placement of bonds has been completed by the bank through BSE-EBP.
HSBC On Indian Aviation
- Industry has seen a gradual recovery in demand
- Capacity addition should reduce losses
- Weakening traffic mix is a concern
- Downgrade IndiGo as we think the stock is now expensive
- Do not see any potential positive catalyst for IndiGo and most bullish scenario is priced in
- Downgrade IndiGo to reduce from hold; price target raised to Rs 1,490 from Rs 1,290
- Maintain buy on SpiceJet; price target raised to Rs 125 from Rs 80
- Expect potential tailwinds for SpiceJet from the return of 737 Max
HSBC On Indian Hotels
- Buy rating maintained
- Price target raised to Rs 151 from Rs 120.5
- Seasonal recovery in demand and a pick-up in banquet business should boost profitability in Q3
- Should also benefit from some consolidation and its focus on growth
- Wider availability of the vaccine can boost demand further
- New initiatives set to support profitability
Haitong On Sundaram Finance
- Initiate coverage with outperform rating
- Price target of Rs 2,100
- Acts as a defensive in a cyclical sector
- Performance of subsidiaries will improve
- Build-in vehicle finance CAGR of 11% over FY20-23
- Main risk to rating is the prolonged slowdown in CV sales in India
DAM Capital On JSPL
- Outperformer rating maintained
- Price target raised to Rs 366 from Rs 300
- Strong demand, lower supply propel steel prices
- Expect prices to sustain until Q4FY21 before cooling off in FY22E
- Power profitability to improve with start of coal block
- Current price does not factor in the higher steel prices
- A strong H2FY21 will help deleveraging the balance sheet
- Raise FY21E Ebitda by 10% and FY22E Ebitda by 12% to factor in higher steel prices and power volumes
Investec On MCX
- Upgrade to buy from hold
- Price target raised to Rs 2,110 from Rs 1,500
- Likely beneficiary of 'Make in India' opportunity
- Volume growth due to underlying economic growth, especially manufacturing, has not yet played out
- Tech buyout presents good opportunity to deploy capital
- Valuations are attractive given improved return ratios
- Strong earnings momentum due to margin expansion should aid better return ratios
Pledge Share Details
- Adani Enterprises: Promoters Gautam Adani, Rajesh Adani and Adani Tradeline revoked pledge of 94.98 lakh shares between December 10-11.
- Adani Ports & SEZ: Promoter Adani Tradeline created a pledge of 23.39 lakh shares between December 10-11.
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 1.14 crore between December 10-11. Promoter Adani Tradeline created a pledge of 38.98 lakh shares between December 10-11.
- SMS Pharmaceuticals: Promoter Potluri Infra Projects created a pledge of 8 lakh shares on December 7.
As Reported On December 14.
Who’s Meeting Whom
- 5paisa Capital: To meet Alchemy Capital on December 15.
- Gland Pharma: To meet Axis AMC on December 15.
- Symphony: To meet Principal Asset Management on December 16.
- Tata Steel: To meet Schroders Investment Management and CLSA India on December 16.
- Eicher Motors: To meet Segantii Capital on December 15 and Kotak Mutual Fund on December 17.
- Max Healthcare Institute: To meet UBS Securities on December 17.
- Mahindra Lifespace Developers: To meet JM Financial on December 15 and Goldman Sachs on December 17.
- Voltas: To meet Edelweiss Management e-Connect on December 16.
- Cipla: To meet GIC on December 15 and Capital Research Global Investors on December 18.
- Burger King India: Valiant Mauritius Partners Offshore bought 25 lakh shares at Rs 130.28 per share. Basant Maheshwari Wealth Advisers LLP bought 24.31 lakh shares at Rs 112.79 per share.
- Snowman Logistics: Adani Logistics sold 12.45 lakh shares (0.75%) at Rs 62.21.
- Arvind SmartSpaces: Chaudhary Amitkumar S bought 1.87 lakh shares (0.53%) at Rs 111.63 per share.
- AGM: Arihant Foundations & Housing, Mahamaya Steel Industries, Panacea Biotec, Prakash Steelage, Cubex Tubings, Radaan Mediaworks India, MMTC.
- Price Band Revised From 10% To 5%: Birla Tyres.
- Ex Stock Split (From Rs 10 to Rs 2): APL Apollo Tubes
- Move In To ASM Framework: Jet Airways.
- Move In To Short-term ASM Framework: Adani Power, The Anup Engineering, Manaksia, 3I Infotech.
- Move Out Of Short-term ASM Framework: Olectra Greentech.
- Axis Bank: Promoter Specified Undertaking of The Unit Trust of India sold 33.36 lakh shares between 10-14.
- Filatex India: Promoter Anu Bhageria acquired 6.50 lakh shares between December 10-11.
- Ashapura Minechem: Promoter Ashapura Industrial Finance acquired 1 lakh shares on December 11.
- Great Eastern Shipping: Promoter Gopali Mulji sold 56,000 shares between December 10-11.
- Aarti Industries: Promoter Chandrakant Vallabhaji Gogri sold 38,500 shares on December 9.
As Reported On December 14.
Money Market Update
- The rupee saw modest gains in Monday's trading session, ending at 73.56 against the U.S. Dollar as compared to Friday's close of 73.65.
- The currency was the second best performer in Asia on Monday.
- Nifty December futures ended at 13,568; premium of 10 points
- Nifty December futures shed 1% and 1.2 lakh shares in Open Interest
- Nifty Bank December futures end at 30,781; premium of 36 points
- Nifty Bank December futures shed 0.1% and 1,825 shares in Open Interest
- Nifty Put-Call Ratio at 1.83
- Stocks In F&O Ban: Canara Bank, Punjab National Bank
Nifty: December 17 Expiry
- Maximum Open Interest on Call side at 13,600 strike (32.2 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (25.5 lakh shares)
- Active Options: 13,600 Call (+8 Lakh Shares) and 13,500 Put (+4.1 Lakh Shares)
Nifty: December 31 Expiry
- Maximum Open Interest on Call side at 13,000 strike (23.8 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (39.6 lakh shares)